Investors Await RBA’s Monetary Policy Statement

Any changes in the RBA’s monetary policy statement report is expected to affect the AUD volatility.

If the RBA statement shows a hawkish trend, that is seen as positive for the AUD, while a dovish outlook is seen as negative.

The Reserve Bank of Australia’s monetary policy statement will be released Friday, providing clues and quarterly economic trends with a special focus on measures to keep inflation under control.

Earlier this week, the central bank signaled that its record low interest rate may not be on hold until 2024, as previously communicated.

Rising price pressures and the removal of COVID-19 restrictions likely encouraged monetary policymakers to shift the cash rate target forward. However, that still leaves the RBA behind other major central banks.